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Pastimes : Home on the range where the buffalo roam -- Ignore unavailable to you. Want to Upgrade?

To: Hobie1Kenobe who wrote (11037)	3/1/2001 6:36:03 PM
From: Sam Sara	Respond to of 13572

Looking back at ORCL: 14-Dec-00 Oracle Corp (ORCL) 28 9/16 +3/16: CIBC Wrld Mkts reiterates BUY rating and price target of $59. At a recent user group meeting firm found that demand for core database products remains strong and that IT budgets for next year appear to be increasing rather than decreasing; other areas of strong interest included storage management and performance management solutions; analyst notes that within performance management PRSE appeared to be the most popular by a wide margin. 15-Dec-00 11:58 ET Oracle (ORCL)28 15/16 +1 7/16: At first glance, Oracle's Q2 results appear within expectations, albeit on the low end of revenue estimates. However, after further review the results are actually rather impressive, especially given the overall market weakness for software. At first blush, the biggest gripe was weak y/y database license revenue growth of 19%. However, this quarter was Oracle's 19th consecutive quarter in which they incurred negative currency impact and their worst to date, shaving about 6.5 percentage points from the top line. On a constant dollar basis, database license revenue improved 32% from Q1. So if the finance department is not hedging their currency risk well, at least sales growth continues to be robust. Applications license revenues were strong at $279 mln, up 66% y/y, which should ease the fears that surfaced after Q1 regarding the company's strongest potential growth area. Perhaps the most impressive number in the quarter was operating margin. Q2 operating margin of 35.6% was far better than expectations, and marked a 6% sequential increase and an 11% annual improvement. Guidance for Q3 was also positive -- in constant dollars, management expects 20-25% database growth and 75% applications growth for a total license revenue increase of about 30%. Furthermore, the company noted some impressive 11i contract wins (Compaq, JDSU, American General) and said that despite the slowdown in PC sales, they are seeing no slowing of business and do not consider their fate tied to PCs. This was a strong quarter for Oracle regardless of the difficult environment. It was by no means a blowout, but Oracle is executing their plan and dismissing concerns about earnings visibility through continued strong database sales, much stronger applications growth and impressive margin improvement. - Matt Gould, Briefing.com The real story: biz.yahoo.com